FHB Logo Facebook LinkedIn Email Pinterest Twitter X Instagram Tiktok YouTube Plus Icon Close Icon Navigation Search Icon Navigation Search Icon Arrow Down Icon Video Guide Icon Article Guide Icon Modal Close Icon Guide Search Icon Skip to content
Subscribe
Log In
  • How-To
  • Design
  • Tools & Materials
  • Restoration
  • Videos
  • Blogs
  • Forum
  • Magazine
  • Members
  • FHB House
  • Podcast
Log In

Discussion Forum

Discussion Forum

tendering process

| Posted in Business on February 13, 2002 05:16am

*
Searching for feedback, trying to get the other side of the story, all at the end of another needlessly frustrating day…
I’ve recently seen a lot of projects in open tenders go to contractors who have low-balled the bid (hoping to make up the difference on extras), or who have made an unfortunate mistake, or who simply don’t know how to price the work properly and/or to make a thorough accounting of all aspects of the work that is involved.
The middle case can usually be addressed with a cautionary phonecall to make sure none of the less obvious but significant costs have been covered. If not, the chance to back out is extended- moral obligations aside, experience has shown that it is better for all to have a contractor who is making a living than one who is losing his/her shirt. Of course, we always try to avoid this occurence entirely before the tenders are received by making sure all items (obvious and less obvious) are spelled out, and uncertainties dismissed,in the contract documents. Clarity is everybody’s friend in this regard.
The first and last cases, however, seem to be more difficult to avoid or to address. The end result often seems to be that the competent bidder who has accounted for everything loses the bid. The winner, either having low-balled intentionally or through ignorance, spends the rest of the contract scrabbling around trying to collect money where possible and disputing every contractual obligation,no matter how small. Work is often done incorrectly and then misrepresented. Even when it comes to lifesafety issues such as fireseparation construction and structural details.
Life for the owner, the contract supervisor, the subs, and the low bidder’s own staff becomes miserable quickly. More time is expended on enforcing the contract than would be required to complete the job properly and on time.
And in all of this, the bidder who knows the job well and will run it properly goes hungry.
An obvious alternative is prequalified bidding, but what about those trying to make a name for themselves starting out?
It still sticks in my craw to see the fees expended on sorting out who should be allowed to run the job, and the time taken by potential bidders in submitting their qualifications- money that would all better off applied to the project in question. In effect, the owners and qualified bidders have to pay in time and/or money to exclude the incompetent ones.
Running ghost generals who are good but don’t meet prequalification under an established contractor (who then operates as a general in name only) can create a headache of paperwork and a nightmarish chain of communication in order to sort out complications, especially in jobs such as renovations of older buildings where decisions need to be made quickly.
I personally would prefer to work only with contractors whose work and skills I know are tried and true, and with whom I have a working and respectful rapport. I also can see, however, the dangers of such an exclusionary process. On many public jobs, such an approach simply isn’t possible given the inevitable accusations of collusion.
Disallowing low bids is exceptionally difficult to do if the low bidder wishes to kick up a fuss- despite what tender announcements and documents may say about ‘lowest bid or any bid not necessarily accepted.’ And in my experience it is always those fly-by-night companies that exert no effort in understanding, coordinating or running their jobs who will be the most likely to exert a considerable amount of effort in disputing any such dismissal.
I suppose I’m just tired of opening tenders and giving work to those who will do the worst work, who will require constant supervision, who will effectively require the threat of legal action to meet their contractual obligations, while the competent contractors that know their business and run their jobs in a clear and organized fashion go hungry.
What’s the view like from the other side?

Reply
  • X
  • facebook
  • linkedin
  • pinterest
  • email
  • add to favorites Log in or Sign up to save your favorite articles

Replies

  1. GACC_DAllas | Feb 13, 2002 03:42am | #1

    *
    Do I get credit for reading this book?

    Ed.

    1. calvin_ | Feb 13, 2002 03:53am | #2

      *Well Ed, I skimmed it after the first cpl paragraphs. I think he likes us. But I'm not sure.

      1. Mike_Maines_ | Feb 13, 2002 04:13am | #3

        *Need me some TP

        1. S._Lykos | Feb 13, 2002 04:21am | #4

          *Frugal, all of your points, including the intended philosphies, are, IMO, correct and right on the mark.Being an optomist however, your comments are heavy on one side of the bridge, that side verbalized under stress, duress and frustration - been there - and don't address the other side. That side tells of some of us with a list of clients waiting only for us to specifically serve them and at our prices, but that's already been addressed here several times in the past .

          1. Luka_ | Feb 13, 2002 05:00am | #5

            *Translation: There are some idiots who don't really know how to make a bid, or who make a mistake in making one, and we'll go easy on them. But what about the other two types of low bid....the guys who deliberately underbid, or the guys who don't know how to figure out what all they need to account for, to make a decent realistic bid, and thus the guys who can make a correct and fair bid always lose out?I think.

          2. Mike_Smith | Feb 13, 2002 05:31am | #6

            *the only solution i've ever seen is working off a qualified bid list for design and contract...and each project the purchasing entity trys to expand the list for better and cull it for the weak...but , it's a process... and it goes with the territory....this is why good executives get the big bucks ....

          3. Mark_McDonnell | Feb 13, 2002 06:16am | #7

            *It also goes to show how flawed the whole bid process/ philosophy is. I've always felt the bid process in the building business is fodder for fraud.If a builder is in it to produce a profit, (as he/she should be) then something has to go.How 'bout trying a different way, Frugal? A relationship first, a defined budget second and concern for ALL parties to come out on the possi-side.

          4. Schelling_McKinley | Feb 13, 2002 01:18pm | #8

            *I find that the open tenders are fairly easy to bid. The plans and specifications are usually very complete, compared with the plans we get from a customer who wants a price from us alone.Yes, it is true that the bid can attract lowballers but sometimes not. We have gotten some very profitable jobs, particularly small restoration work where our skilled crew is much more efficient than a large contractor. Our biggest problem with open bids is being able to work them into our schedule. They usually have a firm deadline called for in the bid, not that you often see the project completed by that date anyway. We usually pass on those.We try not to worry about what others are bid. It is their problem if they underbid. There is another alternative outcome of a low bid. The low bidder just works cheap. We've done that and probably will again.

          5. frugal | Feb 13, 2002 03:54pm | #9

            *In the light of the next morning things always seem better....Sorry for the rant.I see things changing increasingly towards prequalification as Mr. Smith suggests, but I have heard numerous complaints from contractors about the Catch 22 of "needing experience in the work of the bid, in order to get the work which would afford the necessary experience." I suppose, as you point out, it is the nature of the beast. Can't have your cake and eat it too.Further to Mr McDonell's comment, I wouldn't be surprised in the next decade to see the disappearance of the general contractor from all open public bids between 250k and 2-1/2m, to be replaced with project/construction managers running individual contracts with each sub. on behalf of the owner and in coordination with the consultant.Any thoughts on such arrangements? Must return to the grind stone.Thanks for the feedback. Best of luck to all.

          6. Ralph_Wicklund | Feb 13, 2002 05:16pm | #10

            *Project Management is a fact already with federal projects as I'm familiar with them. For instance, Cameron and Barkley, a pretty big multifaceted company, is handling a bunch of projects at NAS Jacksonville, from large scale new construction to the down and dirty repair and renovation scene. I'm quoting on a couple of them myself.It's a better scenerio for the contractor who then works for Cameron and Barkley, doesn't have to jump through all the hoops required for government contracts, has a central knowledgeable contact and gets paid ON TIME.

Log in or create an account to post a comment.

Sign up Log in

Become a member and get full access to FineHomebuilding.com

Video Shorts

Categories

  • Business
  • Code Questions
  • Construction Techniques
  • Energy, Heating & Insulation
  • General Discussion
  • Help/Work Wanted
  • Photo Gallery
  • Reader Classified
  • Tools for Home Building

Discussion Forum

Recent Posts and Replies

  • |
  • |
  • |
  • |
  • |
  • |
View More Create Post

Up Next

Video Shorts

Featured Story

FHB Summit 2025 — Design, Build, Business

Join some of the most experienced and recognized building professionals for two days of presentations, panel discussions, networking, and more.

Featured Video

Video: Build a Fireplace, Brick by Brick

Watch mason Mike Mehaffey construct a traditional-style fireplace that burns well and meets current building codes.

Related Stories

  • Podcast Episode 692: Introduction to Trade Work, Embodied Carbon, and Envelope Improvements
  • FHB Podcast Segment: Embodied Greenhouse Gas Emissions and the Building Codes
  • Old Boots Learn New Tricks
  • Install Denim Insulation Like a Pro

Highlights

Fine Homebuilding All Access
Fine Homebuilding Podcast
Tool Tech
Plus, get an extra 20% off with code GIFT20

"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Fine Homebuilding Magazine

  • Issue 332 - July 2025
    • Custom Built-ins With Job-Site Tools
    • Fight House Fires Through Design
    • Making the Move to Multifamily
  • Issue 331 - June 2025
    • A More Resilient Roof
    • Tool Test: You Need a Drywall Sander
    • Ducted vs. Ductless Heat Pumps
  • Issue 330 - April/May 2025
    • Deck Details for Durability
    • FAQs on HPWHs
    • 10 Tips for a Long-Lasting Paint Job
  • Issue 329 - Feb/Mar 2025
    • Smart Foundation for a Small Addition
    • A Kominka Comes West
    • Making Small Kitchens Work
  • Issue 328 - Dec/Jan 2025
    • How a Pro Replaces Columns
    • Passive House 3.0
    • Tool Test: Compact Line Lasers

Fine Home Building

Newsletter Sign-up

  • Fine Homebuilding

    Home building tips, offers, and expert advice in your inbox.

  • Green Building Advisor

    Building science and energy efficiency advice, plus special offers, in your inbox.

  • Old House Journal

    Repair, renovation, and restoration tips, plus special offers, in your inbox.

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters

Follow

  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X
  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X

Membership & Magazine

  • Online Archive
  • Start Free Trial
  • Magazine Subscription
  • Magazine Renewal
  • Gift a Subscription
  • Customer Support
  • Privacy Preferences
  • About
  • Contact
  • Advertise
  • Careers
  • Terms of Use
  • Site Map
  • Do not sell or share my information
  • Privacy Policy
  • Accessibility
  • California Privacy Rights

© 2025 Active Interest Media. All rights reserved.

Fine Homebuilding receives a commission for items purchased through links on this site, including Amazon Associates and other affiliate advertising programs.

  • Home Group
  • Antique Trader
  • Arts & Crafts Homes
  • Bank Note Reporter
  • Cabin Life
  • Cuisine at Home
  • Fine Gardening
  • Fine Woodworking
  • Green Building Advisor
  • Garden Gate
  • Horticulture
  • Keep Craft Alive
  • Log Home Living
  • Military Trader/Vehicles
  • Numismatic News
  • Numismaster
  • Old Cars Weekly
  • Old House Journal
  • Period Homes
  • Popular Woodworking
  • Script
  • ShopNotes
  • Sports Collectors Digest
  • Threads
  • Timber Home Living
  • Traditional Building
  • Woodsmith
  • World Coin News
  • Writer's Digest
Active Interest Media logo
X
X
This is a dialog window which overlays the main content of the page. The modal window is a 'site map' of the most critical areas of the site. Pressing the Escape (ESC) button will close the modal and bring you back to where you were on the page.

Main Menu

  • How-To
  • Design
  • Tools & Materials
  • Video
  • Blogs
  • Forum
  • Project Guides
  • Reader Projects
  • Magazine
  • Members
  • FHB House

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Popular Topics

  • Kitchens
  • Business
  • Bedrooms
  • Roofs
  • Architecture and Design
  • Green Building
  • Decks
  • Framing
  • Safety
  • Remodeling
  • Bathrooms
  • Windows
  • Tilework
  • Ceilings
  • HVAC

Magazine

  • Current Issue
  • Past Issues
  • Magazine Index
  • Subscribe
  • Online Archive
  • Author Guidelines

All Access

  • Member Home
  • Start Free Trial
  • Gift Membership

Online Learning

  • Courses
  • Project Guides
  • Reader Projects
  • Podcast

More

  • FHB Ambassadors
  • FHB House
  • Customer Support

Account

  • Log In
  • Join

Newsletter

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Follow

  • X
  • YouTube
  • instagram
  • facebook
  • pinterest
  • Tiktok

Join All Access

Become a member and get instant access to thousands of videos, how-tos, tool reviews, and design features.

Start Your Free Trial

Subscribe

FHB Magazine

Start your subscription today and save up to 70%

Subscribe

Enjoy unlimited access to Fine Homebuilding. Join Now

Already a member? Log in

We hope you’ve enjoyed your free articles. To keep reading, become a member today.

Get complete site access to expert advice, how-to videos, Code Check, and more, plus the print magazine.

Start your FREE trial

Already a member? Log in

Privacy Policy Update

We use cookies, pixels, script and other tracking technologies to analyze and improve our service, to improve and personalize content, and for advertising to you. We also share information about your use of our site with third-party social media, advertising and analytics partners. You can view our Privacy Policy here and our Terms of Use here.

Cookies

Analytics

These cookies help us track site metrics to improve our sites and provide a better user experience.

Advertising/Social Media

These cookies are used to serve advertisements aligned with your interests.

Essential

These cookies are required to provide basic functions like page navigation and access to secure areas of the website.

Delete My Data

Delete all cookies and associated data